General Electric’s stock performance
General Electric’s (GE) stock price has fallen 5.3% since April 1 as of June 24. On June 24, the company’s stock was trading at $29.82.
The S&P index fell 0.5% at the end of June 24 from the beginning of 2Q16. Among General Electric’s peers in the industrial space (XLI) are Honeywell International (HON) and 3M (MMM), which rose 1.3% and 2.1%, respectively, by June 24 from the beginning of the quarter in April.
GE’s stock price has been impacted by macro concerns—especially in the oil and gas space. Management is confident about meeting its guidance for fiscal 2016 even though the company is facing the slowdown in industrial technology and lumpiness in the oil and gas (XOP) sector.
3M has outperformed large, diversified peers by consistently increasing revenues as well as earnings.
While General Electric is undergoing a transformation, it should take away a significant portion of its GE Capital business from its books. GE Capital is General Electric’s financial arm that provides commercial lending and leasing and a host of other financial services (IYG) to various retail and industrial customers.
Honeywell’s net sales in 2015 fell for the first time in several years, declining 4%.
We know General Electric has been a stable stock, but let’s see if GE’s oil and gas segment can drag down the company.